Customs Sets Duties on Imported Chinese Wrist Watches for the First Time

The Directorate General of Customs Valuation Karachi has, for the first time, fixed the values of the wristwatches (low-end brands) from China to control the evasion of duties and taxes at the import stage.

Accordingly, the Federal Board of Revenue (FBR) Directorate issued valuation rulings on Wednesday, and the import values of wristwatches have been fixed within the range of US$1.50 per piece to $ 6.6 per piece.

These values are not applicable to the Casio, Citizen, Roamer, Alba, Seiko, Omax, Onyx, Westar, Favour Luba, Rolex, Rado, Calvin (CK) Tissot, Titan, Raymond Well, Swatch, Tag Heuer, Cartier, Baunce & Mercier, (B&M), Sonex, Longines, Forecer21, and Prestige brands.

According to the ruling, the directorate was notified that the values of the wristwatches (low-end brands) from China are being declared at much lower values than their current international values to customs in the absence of the Valuation Ruling in the field. Verification by the Directorate General reaffirmed this stance.

Keeping in view this prevailing price of the subject goods, an exercise for determination of the Customs Values of Wrist Watches (low-end brands) in terms of under Section 25A of the Customs Act, 1969 was undertaken.

Finally, the prices of raw materials and international prices on the internet were examined thoroughly and the information thus gathered was utilized and analyzed to determine the Custom Values of Wrist Watches (low-end-brands), the directorate added.

It has enhanced the Customs Values on the import of playing cards (made of paper/plastic coating/plastic) from China, Taiwan, and the USA through another ruling.

Another valuation ruling has revised the Customs values on the import of Latex Rubber Threads from China, Malaysia, and Thailand.

The directorate has also increased the Customs Values on the import of handbags, shoulder bags, purses, and clutches made of artificial leather (low-end brands) from China. This Valuation Ruling is only for handbags/shoulder bags/purses/clutches, and wallets, made of artificial leather (not genuine or composition leather). The clearance data, raw material prices, and international prices on the internet were examined thoroughly and the information thus gathered was utilized and analyzed to determine the Custom Values of Handbags, Shoulder Bags, Purses, and Clutches of Artificial Leather (low-end brands) under section 25(9) of the Customs Act, 1969.

Previously, the Customs values of Latex Rubber Threads were determined under section 25A of the Customs Act, 1969 and the Customs Values vide the Valuation Ruling in 2019. However, representations were received from importers and manufacturers for the revision and rationalization of the existing valuation ruling in light of the transitional values in the international market. Accordingly, an exercise was initiated by the Directorate General to determine the Customs values of the subject goods in terms of Section 25A of the Customs Act, 1969.

The directorate has also determined the Customs Values on the import of Un-plasticized Polyvinyl Chloride (UPVC) Pipes; Chlorinated Polyvinyl Chloride (CPVC) pipes; High-Density Polyethylene/Polyethylene (HDPE/PE) Pipes Fittings and Pipe Fittings under section 25A of the Customs Act, 1969.

Earlier, the Customs Values of Pipes and Pipe Fittings were determined vide the Valuation Ruling No. 1259/2018. The representations for the fresh determination of Customs Values were received in this Directorate General being more than four years old. Furthermore, the Quetta Chamber of Commerce and the Sarhad Chamber of Commerce & Industry had filed representations to the FBR.

A meeting in this regard was held at the FBR headquarters that was chaired by the Chairman FBR and attended by a Member (Customs-Policy), Director General Customs Valuation, and other participants, including representatives of both the chambers. Cognizant of the difference between the freight from the land and sea routes, and the quality of goods and other socio-economic factors, the Board forwarded a record note.

Also, in view of the foregoing, an exercise was undertaken by this Directorate General to determine the Customs Values of subject goods afresh in terms of Section 25A of the Customs Act, 1969.

The reduction of eight percent will be admissible on a total of the above value on account of the freight charges if the goods are imported through the land route, the FBR added.